Sansha Electric Manufacturing Co., Ltd. (6882) AI Stock Analysis

• Market Cap: ¥14.51B
• Dividend Yield: 4.42%
• Average Volume (3M): 42.48K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.91
• Revenue Growth: -11.74%
• EPS Growth: -84.61%
• Country: JP
• Employees: 1,418
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 8.58
• Shares Outstanding: 14,950,000
• 10 Day Avg. Volume: 42,220
• 30 Day Avg. Volume: 42,476
• PEG Ratio: -0.28
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.45
• P/FCF Ratio: -10.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,205.00 ▲(30.69% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is anchored by a robust balance sheet and generally solid financial stability, but it is held back by the sharp drop in profitability and negative free cash flow. Technically, the uptrend is strong yet overbought signals raise pullback risk, and valuation is the biggest headwind due to the very high P/E despite a moderate dividend yield.

Positive Factors

Robust balance sheet / low leverage

The company’s low debt and high equity ratio provide durable financial stability and lower insolvency risk. That capital structure preserves strategic optionality, allowing management to fund working capital, capex or absorb earnings volatility without immediate financing pressure over the next several quarters.

Stable gross margins

A consistent ~25% gross margin indicates enduring product-level pricing power and manufacturing cost control. This structural margin gives the business a cushion to restore operating profitability if SG&A or overheads are managed, supporting sustainable margin recovery over a multi-quarter horizon.

Established revenue history and scale

A historical pattern of revenue growth and an established workforce (~1,418 employees) imply market presence and operational scale. Those structural assets—customer relationships, capacity and distribution—support the company’s ability to recover demand and rebuild top-line momentum without a fundamental business model change.

Negative Factors

Sharp net margin deterioration

A collapse in net margin from ~9.5% to under 2% materially weakens internal earnings generation. This reduces retained cash and amplifies earnings volatility; if structural (pricing pressure or higher costs), it will limit the company's ability to fund investments or maintain distributions without restoring core profitability.

Negative free cash flow

Turning FCF negative signals impaired cash conversion driven by weaker operating cash and higher capex. Persistent negative FCF forces reliance on the balance sheet or external financing, reduces liquidity buffers, and constrains strategic flexibility and reinvestment over the medium term.

Revenue decline pressuring EBIT/EBITDA

A significant drop in revenue reduced scale and worsened fixed-cost absorption, producing weaker EBIT/EBITDA. Structural or sustained top-line declines make operating leverage adverse, meaning margin recovery will likely require either durable demand improvement or painful cost restructuring.

Sansha Electric Manufacturing Co., Ltd. Business Overview & Revenue Model

Company Description

Sansha Electric Manufacturing Co.,Ltd. manufactures and sells electric, semiconductor and its applied, and medical machinery and equipment in Japan and internationally. It provides discrete semiconductors, such as triac, thyristors, rectifier diodes, and fast recovery diodes; and power modules, including triac, thyristors, rectifier diodes, fast and soft recovery diodes, and SBD and SiC products. The company also offers power supply products for metal surface treatment; grid connected photovoltaic central inverters; uninterrupted power sources; DC power supplies/charging apparatus; electrical regulators; welding machines; and rectification devices. In addition, it is involved in the installation of machinery and equipment, electric wiring, and piping activities. The company was founded in 1933 and is headquartered in Osaka, Japan.

How the Company Makes Money

Sansha Electric generates revenue through the sale of its electrical products and components, which cater to both industrial and consumer markets. The company has established key revenue streams from bulk orders by large industrial clients, as well as smaller-scale sales to retailers and distributors. Additionally, Sansha Electric benefits from long-term contracts with major corporations in the manufacturing sector, providing consistent income. Strategic partnerships with technology firms and collaborations in product development further enhance its market reach and profitability. The company also invests in research and development to innovate its product line, which helps attract new customers and retain existing ones, contributing significantly to its overall earnings.

Sansha Electric Manufacturing Co., Ltd. Financial Statement Overview

Summary

Financials are mixed: a strong, low-leverage balance sheet supports stability (Balance Sheet Score 85), but profitability deteriorated sharply (net margin down to 1.97% in 2025 from 9.53% in 2024) and free cash flow turned negative in 2025 (Cash Flow Score 60).

Income Statement

Sansha Electric Manufacturing Co., Ltd. has shown mixed performance in terms of revenue and profit margins. Gross profit margin remained stable at around 25% in recent years. However, net profit margin decreased significantly in 2025 to 1.97% from 9.53% in 2024, indicating pressure on bottom line profitability. The company experienced a substantial decline in revenue from 2024 to 2025, impacting its EBIT and EBITDA margins negatively. Overall, while there is a history of revenue growth, recent trends highlight challenges in maintaining profitability.

Balance Sheet

The balance sheet of Sansha Electric Manufacturing Co., Ltd. is robust, with a strong equity base and low debt levels. The debt-to-equity ratio remains very low, emphasizing financial stability. The equity ratio is high, reflecting a solid capital structure predominantly financed by equity. Despite a decrease in total assets in 2025, the company maintains a healthy balance sheet with solid shareholder equity, reducing financial risk.

Cash Flow

Cash flow analysis reveals some concerns. Free cash flow turned negative in 2025, primarily due to a decline in operating cash flow and increased capital expenditures. The operating cash flow to net income ratio decreased, signaling reduced efficiency in converting income to cash. Historically, free cash flow was positive, but recent trends indicate potential liquidity challenges. The company needs to manage its cash flows more effectively to enhance financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	24.88B	25.44B	31.00B	28.09B	22.68B	19.44B
Gross Profit	5.74B	6.29B	8.58B	6.49B	5.45B	4.41B
EBITDA	1.55B	2.17B	4.32B	2.52B	2.28B	1.63B
Net Income	104.00M	502.00M	2.96B	1.24B	1.15B	497.00M
Balance Sheet
Total Assets	32.53B	33.57B	35.33B	29.08B	27.15B	24.85B
Cash, Cash Equivalents and Short-Term Investments	6.12B	5.76B	5.83B	3.96B	5.03B	5.87B
Total Debt	2.81B	3.30B	1.16B	190.00M	101.00M	66.00M
Total Liabilities	8.86B	9.23B	10.90B	8.02B	7.34B	5.51B
Stockholders Equity	23.66B	24.34B	24.43B	21.07B	19.81B	19.34B
Cash Flow
Free Cash Flow	0.00	-1.07B	1.37B	-999.00M	602.00M	1.20B
Operating Cash Flow	0.00	950.00M	2.30B	-198.00M	940.00M	1.73B
Investing Cash Flow	0.00	-2.39B	-1.10B	-799.00M	-317.00M	-355.00M
Financing Cash Flow	0.00	1.41B	488.00M	-189.00M	-1.67B	-249.00M

Sansha Electric Manufacturing Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 922.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6882, the sentiment is Neutral. The current price of 922 is below the 20-day moving average (MA) of 1039.00, below the 50-day MA of 1009.98, and above the 200-day MA of 908.80, indicating a neutral trend. The MACD of 13.59 indicates Positive momentum. The RSI at 50.19 is Neutral, neither overbought nor oversold. The STOCH value of 29.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6882.

Sansha Electric Manufacturing Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6643	85 Outperform	¥31.45B	6.42	―	3.12%	6.60%	0.27%
5819	75 Outperform	¥13.40B	10.63	―	3.02%	3.43%	3.75%
6637	72 Outperform	¥53.09B	12.37	―	0.91%	5.28%	18.38%
6882	65 Neutral	¥14.51B	27.15	―	4.42%	-11.74%	-84.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥53.92B	195.39	―	5.01%	-32.74%	-117.06%
6943	51 Neutral	¥4.03B	7.18	―	1.79%	-10.43%	-368.47%

Sansha Electric Manufacturing Co., Ltd. Corporate Events

Sansha Electric Posts Profit Slump Despite Higher Sales, Keeps Full-Year Outlook and Dividend Plan

Sansha Electric reported a marginal 1.4% year-on-year increase in consolidated net sales to ¥18.18 billion for the nine months ended December 31, 2025, but profitability deteriorated sharply, with operating profit down 43.8% to ¥347 million and profit attributable to owners of parent plunging 83.2% to ¥84 million, resulting in a significant drop in earnings per share to ¥6.34. Despite weaker interim profits, the company’s financial position remained solid with a high equity ratio of 71.7% and largely unchanged net assets, and it maintained its dividend policy—paying an interim ¥10 per share and forecasting a full-year total of ¥40—while leaving its full-year guidance unchanged, projecting an 8.9% rise in net sales to ¥27.7 billion and a strong recovery in profit attributable to owners of parent to ¥840 million, which would represent a 67.1% increase year on year.

The most recent analyst rating on (JP:6882) stock is a Hold with a Yen986.00 price target. To see the full list of analyst forecasts on Sansha Electric Manufacturing Co., Ltd. stock, see the JP:6882 Stock Forecast page.